Summary of J.P. Morgan's Global Memory Market Conference Call Industry Overview - The report focuses on the **DRAM (Dynamic Random Access Memory)** market, analyzing its historical dynamics, current trends, and future prospects [1][12]. - The DRAM market has grown significantly over the past 50 years, accounting for **10-20%** of the total semiconductor market, with memory (including DRAM and NAND) comprising **20-30%** of the semiconductor market [13]. Key Insights Long-term DRAM Dynamics - **Demand Growth**: DRAM bit demand growth is decelerating due to maturing end-applications, but the total addressable market (TAM) growth has accelerated, achieving a **double-digit percentage (DD%)** growth rate, particularly driven by High Bandwidth Memory (HBM) [1][8]. - **ASP Trends**: Achieving higher average selling price (ASP) per bit is becoming critical as DRAM manufacturers face physical limitations on scaling memory density. The DRAM bit per wafer has plateaued at approximately **5K GB/wafer** [1][23]. - **Future Projections**: The DRAM TAM is expected to sustain a robust **14% CAGR** through **2030E**, with AI applications projected to increase from **22%** of DRAM in **2024** to **64%** by **2030** [8][44]. Competitive Landscape - **China's Participation**: CXMT, China's leading DRAM supplier, is transitioning from DDR4/LPDDR4 to high-end DRAM products like DDR5/LPDDR5. This shift indicates CXMT's ambition to compete with major memory manufacturers, although it faces significant technological challenges [8][39]. - **Market Consolidation**: The DRAM industry has consolidated from over **20 players** in the 1990s to three major players today, indicating a highly competitive environment [21]. Capital Expenditure and Technology - **Capital Intensity**: The memory industry is capital-intensive, with DRAM capital intensity reaching over **60%** during downcycles. Future capital expenditures are expected to focus more on back-end processes and R&D due to scaling challenges [10]. - **Technological Innovations**: The next inflection point in DRAM technology is anticipated to be **4F²/3D DRAM**, which aims to improve memory density by approximately **30%** [10]. Market Implications - **Investment Thesis**: The memory investment landscape is shifting, with company-specific drivers becoming more significant. SK Hynix (SKH) is highlighted as a preferred investment pick due to its strong positioning in AI memory solutions [10]. - **Pricing Dynamics**: The ASP for non-HBM applications is projected to decline at a rate of **-6% CAGR** over the next five years, while HBM ASPs are expected to increase due to rising demand [46]. Additional Considerations - **Supply-Demand Tightness**: The report anticipates continued supply-demand tightness in the DRAM market, particularly as HBM capacity grows and non-HBM applications also require significant memory resources [50]. - **Regulatory Environment**: The U.S. government's restrictions on Chinese memory makers may tighten, impacting the competitive landscape and technological advancements in the DRAM sector [39]. This summary encapsulates the critical insights and projections regarding the DRAM market as discussed in the conference call, providing a comprehensive overview for potential investors and stakeholders in the semiconductor industry.

Investor Deck I May 2025 1 © 2025 Adeia | All rights reserved. Safe Harbor This presentation contains "forward-looking statements" within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company's current expectations, assumptions, estimates and projections that ...

ASML 2024 Investor Day Summary Company Overview - **Company**: ASML - **Event**: 2024 Investor Day - **Date**: November 14, 2024 - **Location**: Veldhoven, Netherlands Key Industry Insights - The semiconductor industry is projected to remain strong, with a market size of €1 trillion in 2022 and expected to maintain this size in 2024, but with a shift towards advanced logic and DRAM due to AI advancements [14][15] - AI is expected to significantly boost the semiconductor industry, with approximately 40% of the semiconductor business projected to revolve around AI by 2030 [32][33] - The industry requires major innovations to improve cost and energy consumption, particularly in logic and DRAM sectors [20][21] Technology and Product Developments - ASML emphasizes the importance of lithography in driving down costs and energy consumption, asserting that it will remain central to innovation in the semiconductor industry [22] - The company is focusing on EUV (Extreme Ultraviolet) technology, which is maturing and will be scalable for many years, providing customers with cost and energy efficiency [23][24] - Holistic lithography is highlighted as a key solution for improving product quality, flexibility, and time to market [17][18] - ASML plans to reduce the cost of EUV exposure by 30% by 2030 while also cutting emissions by 50% [60][62] Market Trends and Customer Focus - The demand for computing power is accelerating, particularly driven by AI, with a projected increase of 16 times every two years, compared to Moore's Law [40][41] - DRAM is identified as a bottleneck for AI, leading to a shift towards high bandwidth memory (HBM) and potential processing in memory architectures [51][52] - ASML's installed base is growing, leading to increased opportunities for service and upgrades, which are becoming a larger part of the business [26] ESG Commitments - ASML is committed to achieving greenhouse gas neutrality for scope 1 and scope 2 emissions by 2025 and is on track to meet this goal [104] Financial Outlook - The semiconductor industry is expected to remain profitable, with an EBIT of €865 billion in 2023, despite being a downturn year [35][36] - More than €500 billion is projected to be spent on R&D in 2024 to foster innovation within the industry [37] Conclusion - ASML is optimistic about the future, with a strong focus on innovation, customer partnerships, and sustainability initiatives, positioning itself to capitalize on the evolving semiconductor landscape driven by AI and advanced technologies [19][27]